When facing redundancy, many employees accept their first offer without negotiation. But as former FBI hostage negotiator Chris Voss teaches in his bestseller “Never Split the Difference,” strategic negotiation can lead to significantly better outcomes. In this blog, we’ll explore how his proven techniques can help you negotiate your redundancy pay.
Understanding the Stakes
Before diving into negotiation tactics, it’s important to recognize that redundancy negotiations differ from typical commercial deals. You’re discussing your livelihood and career trajectory, while your employer is managing both financial and legal risks. This creates unique opportunities for mutually beneficial outcomes.
It’s also important that you understand your BATNA – your Best Alternative to a Negotiated Agreement. We’ll do a more detailed blog on this soon, but for now, suffice it to say you need to understand what will happen if you can’t agree a settlement package.
That will include thinking about:
- Whether the employer has grounds to terminate your employment regardless of whether an agreement is reached.
- Your contractual and statutory entitlement (see How Your Redundancy Payment is Calculated: A Comprehensive Guide for more details on this).
- How long it will take you to find a new role.
- Your financial needs.
Once you know your BATNA, that forms the floor of your negotiation – the point at which no deal is better than a bad deal.
Key Techniques to Negotiate your Redundancy Pay
Use Calibrated Questions
Voss emphasizes the power of “how” and “what” questions. Instead of demanding a higher package, try:
“How did you determine this redundancy figure?”
“What flexibility exists in the package structure?”
These questions encourage your employer to explain their position while keeping the conversation collaborative rather than confrontational.
Mirror Their Words
As Voss notes, “Mirroring is repeating the last three words (or critical one to three words) of what someone has just said.” When your employer makes a statement about the redundancy terms, simply repeat their key phrases as a question. For example:
Employer: “This is our standard redundancy package.”
You: “Standard redundancy package?”
This technique encourages them to elaborate and often reveals additional information or flexibility.
Label Emotions
Voss advocates “labeling” – acknowledging the emotional undercurrent of the situation. In redundancy discussions, try:
“It seems like the company is trying to handle this process fairly…”
“I sense there’s some room for discussion on the terms…”
Tactical Empathy
Quote: “Tactical empathy is understanding the feelings and mindset of another in the moment and also hearing what is behind those feelings so you increase your influence in all the moments that follow.” – Chris Voss
In redundancy negotiations, demonstrate understanding of your employer’s position:
Acknowledge the business circumstances
Show appreciation for their initial offer
Express your commitment to an amicable resolution
The Power of “No”
Voss challenges conventional wisdom about “yes” being the goal. Instead, he suggests structuring questions to elicit “no” responses, giving your counterpart a sense of control. For example:
“Would it be unreasonable to discuss enhancing the support package?”
Setting Anchors
When discussing figures, Voss recommends using precise numbers rather than round ones. Instead of asking for “£5,000 more,” consider requesting “£5,850 more.” This suggests careful calculation rather than arbitrary demands. For example, your request for more money might be linked to the amount of time you anticipate it will take you to find an equivalent role in the current market.
The Black Swan Strategy
Voss’s “Black Swan” theory focuses on uncovering unknown information that can change the negotiation dynamic. Research:
- Company precedents in similar situations
- Industry standard packages
- Your unique value and contributions
- Using Silence
One of Voss’s most powerful tools is strategic silence. After making a proposal or asking a calibrated question, resist the urge to fill the silence. Let your employer respond first.
Practical Application Steps
1. Preparation
- Research market standards
- Document your achievements
- Understand your legal position
- Calculate your BATNA (Best Alternative To a Negotiated Agreement)
2. Initial Response
- Express appreciation for the offer
- Ask calibrated questions about the package structure
- Use mirroring to gather more information
3. Negotiation Phase
- Present well-researched counterproposals
- Focus on value creation, not just money
- Use labels to maintain emotional connection
- Deploy strategic silence
4. Closing
- Confirm all terms in writing. This will almost certainly be in a settlement agreement.
- Maintain professionalism throughout
- Keep doors open for future reference
- Seek legal advice on the terms and on your settlement agreement before signing.
Common Pitfalls to Avoid
Emotional Reactions
Voss emphasizes emotional control. Avoid:
- Showing anger or frustration
- Making threats
- Taking positions personally
Premature Acceptance
Don’t accept the first offer without exploration. As Voss says, “No deal is better than a bad deal.”
Focusing Only on Money
Consider negotiating:
- Notice periods
- Reference terms
- Outplacement support
- Healthcare continuation
- Share options treatment
Additional Considerations
Quote: “The secret to gaining the upper hand in negotiations is giving the other side the illusion of control.” – Chris Voss
Remember:
- Timing matters – choose appropriate moments for discussion
- Document everything
- Seek professional advice
- Maintain professional relationships
Conclusion
Negotiating redundancy pay requires preparation, emotional intelligence, and strategic thinking. By applying Chris Voss’s techniques from “Never Split the Difference,” you can approach these discussions with confidence and increase your chances of achieving a better outcome.
Remember that every situation is unique. While these techniques are powerful, they should be adapted to your specific circumstances and company culture. Always seek professional legal advice before finalising any agreement.
Final Tips:
- Stay professional throughout
- Focus on mutual benefit
- Keep written records
- Know your worth
- Be prepared to walk away if necessary
Need help with negotiating redundancy pay?
Need expert advice on your settlement agreement? Book a consultation with our employment law specialists who can review your settlement agreement and advise on negotiation strategies.